AUDUSD managed to grow a little bit on Tuesday but seems to lose its positive momentum.
The Australian Dollar got a bit stronger against the USD on Tuesday morning but the rising impulse is clearly fading. The current quote for the instrument is 0.6959.
The Reserve Bank of Australia had another meeting, where it kept the benchmark rate intact at 0.25%. However, the rate wasn’t expected to be revised as the current value is the lowest possible.
Several weeks ago, Australia faced new outbreaks of the COVID-19 but due to a quick response, the country managed to contain hotbeds of disease. The pandemic didn’t turn out to be a catastrophe in Australia and this fact makes the country’s economy more stable and less damaged than the others.
Earlier, the Australian regulator sent out a message that it had enough tools and mechanisms to keep soft monetary conditions in the country’s economy. Of course, the labor market stability raises some questions, such as whether the sector is able to respond and employ all those people who lost their jobs because of the pandemic. And what will happen to inflation and retail sales until consumers recover from the restrictions? However, the RBA adheres to being an “observer” and prefers to avoid any unbalanced decisions.
At the same time, as long as investors’ attitude to risks is positive, the Aussie is looking quite stable and promising.
Orgin: RoboForex
